diff --git a/pkg/apis/machine/v1beta1/machine_webhook.go b/pkg/apis/machine/v1beta1/machine_webhook.go
index 2fa1558194..77dfd84b53 100644
--- a/pkg/apis/machine/v1beta1/machine_webhook.go
+++ b/pkg/apis/machine/v1beta1/machine_webhook.go
@@ -445,7 +445,7 @@ func (h *machineDefaulterHandler) Handle(ctx context.Context, req admission.Requ
 
 	klog.V(3).Infof("Mutate webhook called for Machine: %s", m.GetName())
 
-	// Enforce that the same clusterID is set for machineSet Selector and machine labels.
+	// Only enforce the clusterID if it's not set.
 	// Otherwise a discrepancy on the value would leave the machine orphan
 	// and would trigger a new machine creation by the machineSet.
 	// https://bugzilla.redhat.com/show_bug.cgi?id=1857175
diff --git a/pkg/apis/machine/v1beta1/machineset_webhook.go b/pkg/apis/machine/v1beta1/machineset_webhook.go
index c79a7250a9..6dd8998551 100644
--- a/pkg/apis/machine/v1beta1/machineset_webhook.go
+++ b/pkg/apis/machine/v1beta1/machineset_webhook.go
@@ -117,37 +117,13 @@ func (h *machineSetValidatorHandler) validateMachineSet(ms *MachineSet) (bool, u
 }
 
 func (h *machineSetDefaulterHandler) defaultMachineSet(ms *MachineSet) (bool, utilerrors.Aggregate) {
-	var errs []error
-
 	// Create a Machine from the MachineSet and default the Machine template
 	m := &Machine{Spec: ms.Spec.Template.Spec}
 	if ok, err := h.webhookOperations(m, h.clusterID); !ok {
-		errs = append(errs, err.Errors()...)
-	} else {
-		// Enforce that the same clusterID is set for machineSet Selector and machine labels.
-		// Otherwise a discrepancy on the value would leave the machine orphan
-		// and would trigger a new machine creation by the machineSet.
-		// https://bugzilla.redhat.com/show_bug.cgi?id=1857175
-		if ms.Spec.Selector.MatchLabels == nil {
-			ms.Spec.Selector.MatchLabels = make(map[string]string)
-		}
-		if _, ok := ms.Spec.Selector.MatchLabels[MachineClusterIDLabel]; !ok {
-			ms.Spec.Selector.MatchLabels[MachineClusterIDLabel] = h.clusterID
-		}
-
-		if ms.Spec.Template.Labels == nil {
-			ms.Spec.Template.Labels = make(map[string]string)
-		}
-		if _, ok := ms.Spec.Template.Labels[MachineClusterIDLabel]; !ok {
-			ms.Spec.Template.Labels[MachineClusterIDLabel] = h.clusterID
-		}
-
-		// Restore the defaulted template
-		ms.Spec.Template.Spec = m.Spec
+		return false, utilerrors.NewAggregate(err.Errors())
 	}
 
-	if len(errs) > 0 {
-		return false, utilerrors.NewAggregate(errs)
-	}
+	// Restore the defaulted template
+	ms.Spec.Template.Spec = m.Spec
 	return true, nil
 }
diff --git a/pkg/apis/machine/v1beta1/machineset_webhook_test.go b/pkg/apis/machine/v1beta1/machineset_webhook_test.go
index a3de21a224..9b02bf006e 100644
--- a/pkg/apis/machine/v1beta1/machineset_webhook_test.go
+++ b/pkg/apis/machine/v1beta1/machineset_webhook_test.go
@@ -47,7 +47,6 @@ func TestMachineSetCreation(t *testing.T) {
 		name              string
 		platformType      osconfigv1.PlatformType
 		clusterID         string
-		presetClusterID   bool
 		expectedError     string
 		providerSpecValue *runtime.RawExtension
 	}{
@@ -174,10 +173,9 @@ func TestMachineSetCreation(t *testing.T) {
 			expectedError: "[providerSpec.template: Required value: template must be provided, providerSpec.workspace: Required value: workspace must be provided, providerSpec.network.devices: Required value: at least 1 network device must be provided]",
 		},
 		{
-			name:            "with vSphere and the template, workspace and network devices set",
-			platformType:    osconfigv1.VSpherePlatformType,
-			clusterID:       "vsphere-cluster",
-			presetClusterID: true,
+			name:         "with vSphere and the template, workspace and network devices set",
+			platformType: osconfigv1.VSpherePlatformType,
+			clusterID:    "vsphere-cluster",
 			providerSpecValue: &runtime.RawExtension{
 				Object: &vsphere.VSphereMachineProviderSpec{
 					Template: "template",
@@ -259,15 +257,6 @@ func TestMachineSetCreation(t *testing.T) {
 				},
 			}
 
-			presetClusterID := "anything"
-			if tc.presetClusterID {
-				ms.Spec.Selector.MatchLabels = make(map[string]string)
-				ms.Spec.Selector.MatchLabels[MachineClusterIDLabel] = presetClusterID
-
-				ms.Spec.Template.Labels = make(map[string]string)
-				ms.Spec.Template.Labels[MachineClusterIDLabel] = presetClusterID
-			}
-
 			err = c.Create(ctx, ms)
 			if err == nil {
 				defer func() {
@@ -279,14 +268,6 @@ func TestMachineSetCreation(t *testing.T) {
 				gs.Expect(err).ToNot(BeNil())
 				gs.Expect(apierrors.ReasonForError(err)).To(BeEquivalentTo(tc.expectedError))
 			} else {
-				if tc.presetClusterID {
-					gs.Expect(ms.Spec.Selector.MatchLabels[MachineClusterIDLabel]).To(BeIdenticalTo(presetClusterID))
-					gs.Expect(ms.Spec.Template.Labels[MachineClusterIDLabel]).To(BeIdenticalTo(presetClusterID))
-
-				} else {
-					gs.Expect(ms.Spec.Selector.MatchLabels[MachineClusterIDLabel]).To(BeIdenticalTo(tc.clusterID))
-					gs.Expect(ms.Spec.Template.Labels[MachineClusterIDLabel]).To(BeIdenticalTo(tc.clusterID))
-				}
 				gs.Expect(err).To(BeNil())
 			}
 		})